Marketing Audit Report: M&S Internal and External Analysis

This report presents a marketing audit of Marks and Spencer (M&S), a multinational British retailer. It begins with an executive summary and introduction, followed by an analysis of the company's background, including its mission and strategies. The report then delves into a macro-environmental analysis using the PESTLE model (Political, Economic, Social, Technological, Legal, and Environmental factors) to assess the external market situation. Micro-analysis examines internal factors such as the company, its mission statement, customers, suppliers, and marketing intermediaries. A competitive analysis is conducted to evaluate M&S's position relative to its rivals. A SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) is also performed. The report concludes with recommendations and a list of references, providing a comprehensive overview of M&S's marketing environment and strategies.

Marketing Audit Report

EXECUTIVE SUMMARY
As per this report it is determined that marketing is taken into more place in businesses
& considered as the foremost prominent department within the company which operate various
activities. The importance of the marketing audit is more because it can help to spot &
implement the interior and external business environment factors and also helpful to evaluate
that in company which areas do well or not. With the assistance of PESTLE model, macro
analysis is completed thereto is beneficial to measure the entire external market situation. In
term of micro analysis, business uses various internal factors including mission statement and
suppliers. SWOT analysis determined the strength & helps to get rid of the weakness &
obtain the opportunities to get rid of the threats.

Table of Contents
EXECUTIVE SUMMARY.........................................................................................................................2
INTRODUCTION.......................................................................................................................................4
MAIN BODY..............................................................................................................................................4
COMPANY BACKGROUND....................................................................................................................4
MACRO ANALYSIS..................................................................................................................................5
PESTLE Analysis....................................................................................................................................5
MICRO ANALYSIS...................................................................................................................................7
Company.................................................................................................................................................7
Customers................................................................................................................................................8
Suppliers..................................................................................................................................................9
Marketing Intermediaries........................................................................................................................9
COMPETITIVE ANALYSIS....................................................................................................................10
SWOT ANALYSIS...................................................................................................................................12
CONCLUSION.........................................................................................................................................14
REFERENCES..........................................................................................................................................15

INTRODUCTION
Companies are owned and managed by individual and group of people for a specific motive
like profit maximization and market growth. To gain more profitability, it is necessary for the
company to adopt specific marketing method with proper marketing planning which can help full
to achieve all the operations actively (Chen and Yang, 2019). Marketing audit is a practical
method which can help full to analyze & implement entire marketing environment and also
evaluate the certain areas which can be an opportunity and threat for business. The main purpose
of this report is to discuss Marks and Spencer activities related to the marketing audit. M & S
established in the year 1884 and headquartered in London, UK. This is multinational British
retailer brand which offering various products like clothes, household goods, food items and
many more. This company also registered in London stock exchange. This report will discuss
about the significance of marketing audit in term of internal and external business environment.
This report also evaluates the competitive analysis to identify the situation of their rivals.
Moreover, SWOT analysis also conducts which can help you to analyze the strengths &
weaknesses of the company.
MAIN BODY
COMPANY BACKGROUND
Marks and Spencer is the popular brand with gain attention to their customers via
providing top quality products and services. Michael Marks and Thomas Spencer established this
company and maintain all operations effectively. Company contain more than 78000 employees
are working who are providing guest contribution on the success of the firm. Company is
providing their best services in UK and around the world which is considered as the most
approachable and convenient designer brand that is the main strength of the company.
Assumptions and perception of the meat market people and local communities and high cost is is
considered as the weak point of the company (CHEIKH and ALAOUI, 2019). The current
market situation is very competitive and there is so much competition in retailer industry. To
take more competitive advantage, company adopt competitive pricing strategy which can help

full to take more competitive advantage so that company can effectively improve their market
growth as compared to their competitors.
MACRO ANALYSIS
PESTLE Analysis
In order to regulate whole business operations in an appropriate manner, it is necessary for
the companies to analyze the impact of macro environmental factor which can help full to
evaluate its effect on the business operations. To determined macro external business
environment factors, M& S conduct PESTLE analysis so that company can effectively measure
the effect of all these factors which are involved in this analysis like political, economical, social,
technological, legal & environmental factors. The explanation about all these factors are given
below-
 Political Factors – In this factors, their involvement of various elements such as
political stability, political instability , trade restrictions and regulations, taxations,
political consideration, foreign trade regulations and many more. Company need to
contain proper awareness about foreign trade policies and also political procedures which
can helpful to regulate all the operations effectively and also company gain some
awareness about other foreign countries Political situation which can help full to deal in
the foreign country markets appropriately. M & S operating their business across the
whole word so company face various political issues & challenges related to the foreign
currencies and operations (Golyash, Panasiuk and Sachenko, 2017). It is necessary for
M& S to pay more attention on each and every regulations which can help you to provide
mandatory and workforce benefits which can help full to manage the antitrust laws
related to the industry so that they can effectively operate their business operations with
the political consideration.
 Economical Factors – As per the economical factors, interest rate, exchange rate,
economic growth, development of communities and society, employment rate, inflation
and recession considered by the companies. These factors provide direct impact on the
performance of the business. M& S concentrate on all these factors so that company can
provide their best contribution in the development of the country by providing them more

foreign currencies. Various fluctuations in the inflation in and recession rates affect the
pricing policies of the company so company need to adopt competitive pricing policy
which can help full to gain more profit. Company can also train their workforce so that
they can develop new skills as per the current market and get more satisfaction Gray and
et. al., 2020). Social Factors – Cross cultural activities, need and preference of the customers, buying
behavior of the customer, purchasing habits and decisions, income, educational level are
involved in social factors which influence the marketing of the company. M & S is more
popular large organization so it is necessary for the company to analyze the requirements
and taste of their customer which can help full to maintain their marketing. M & S adopt
flat organizational structure which can help full to maintain its activities properly so that
company can target audience demographically. Through market research, company can
effectively address the preference of their customers so that company can do modification
as for their suggestion. Technological Factors – Technologies are taking more place in each and every
individuals life without technology no one can imagine their life because it can help full
to make their daily work more easy. In term of technological factor, modification in this
technologies, technical growth, internet error, no internet connectivity are involved. M&
S running their business operations globally and with the help of technologies, advanced
software and applications. M &S consider high level of technological considerations and
use more effectively social media platforms so that company can reach the niche market
and local people which can help improve their productivity (Kamaruddin and Hanefah,
2017). Legal Factors – In this factor, laws, legislations, act, policies, legal procedures, lawful
activities and other legal regulations are included. M& S follow properly all the legal
considerations so that company can operate their Company operations in UK and outside
the UK. The legal structure and framework of every country is different, to deal with all
other foreign countries properly e and establish a good market in that particular country
so there is a need to properly follow all the Legal procedure for the smooth running of all
the operations in the foreign countries. M& S use various laws and act like equality act,

data protection and regulation Act , employment act, health and safety laws and many
more which can help full to improve the market position of the company. Environmental Factors - These factors include climate change, population growth rate,
pollution level, sustainability rate and other environmental factors. M& S take care about
all these factors so that company can appropriately conduct their operations internal and
external environment of the business. Company also adopts green marketing so that
company can provide their contribution to maintain the environmental sustainability
(Meyabadi and Deihimi, 2017).
MICRO ANALYSIS
To maintain every task within an organization, it is necessary to conduct micro analysis
which can help full to identify the effect of internal factors on the basis practices and Strategies
and also employees of the company. M& S use this analysis so that company can effectively
understand the whole organizational aspect so that managers and leaders take appropriate actions
to improve those conditions which provide direct impact on the productivity of the company.
Company need to pay more attention of all those factors which are involved in this are given
below-
Company
Company is a functional and separate legal entity which formed with the special and
unique idea so that company builds effective market. M& S is famous for their high quality and
fashionable and designer products which can help full to gain more profitability. There are large
number of workforce are involved who work properly to achieve their operations.
Mission Statement
To create the aspiration quality products so that it can add more value in their product and
services so that company can gain more profit advantage and customer satisfaction.
Strategy
Marks and Spencer offer high quality of product and services in pocket friendly price
which can helpful to make their customers base strong and their market value also enhance. Due

to recession, all people want to purchase those products which are convenient at cost and provide
high quality of experience so company prepares a strategy to provide their product and services
at suitable rate so that everyone can affords their products (Mustapha and Lai, 2017).(Nebbak
and et. al., 2017). The another strategy of the company , to adopt high-level of technologies and
use advanced technological considerations which can help full to expand their business
operations in local and niche market so that they can target more many customers through online
platforms like Facebook, Instagram, Twitter, LinkedIn etc.
Customers
Customers are helpful to improve the sales and revenue of the company and it is
necessary for the company to focus on requirements and need of the customer so that company
can achieve more market growth. M& S target all age groups and also maintain all the
consideration of demographic factor. Company can also conduct segmentation and targeting
analysis which can help full to target customers effectively. The research and development of the
company is concerned about to identify the requirements of the customer so that company can do
some changes according to customer preference so that company can gain their satisfaction level
and fulfill all their expectations (Yee and et. al., 2017). With the help of psychological
segmentations, company identify the behavior, attitude and perception about the customers in
term of their product and services which can help full to maintain their product quality and
applicability. Satisfied customers are considered the key of success so it is necessary for the
company to concentrate on demand of the customers to gain customer loyalty nationally and
internationally.
Consumer Market
The market of M& S is vaaste and also diversifies. In term of the UK market, the brand
value of the company is more and company providing High quality services and covers all
aspects of the consumer market. To lead the consumer market, company adopts all the
considerations of digital marketing and social media marketing and used effectively. In UK,
more than 1038 stores are established and more than 481 stores located across the UK.
International Market

Marks and Spencer operate their business operations internationally and deal with many
more foreign countries. Company contain more than 17 global franchise which can help full to
enhance their marketing share. On the basis of their foreign market and Global franchise
partners, company accounting for the 35% of the international sales. The franchise model of the
company is contain the low risk rate , capital light and drive the profit growth in the common
market expertise which can help full to access the retail in every locations.
Suppliers
Marks and Spencer is a large corporation and a big brand which cover the whole market
area so there are various suppliers from that company deal with. M&S provide variety of goods
related to household products, designer clothing, food items and many more. In term of clothing
& and home products around 1,000 factories and many other manufacturing stores are available
in which suppliers deal with various countries like China , India, Turkey, Cambodia, Bangladesh
& Sri Lanka. Sometimes company e face various issues in supplies related to the shipping of the
products and services , supply chain management, delivery system, deal with the other countries
clients and retailer and wholesalers (Forleo and Palmieri 2019).
Marketing Intermediaries
In context of Marks and Spencer, there are some people are involved in marketing
intermediaries like brokers, retailers, agents distributors, wholesaler and consumers. Company
need to deal with them properly so that company can effectively communicate them and also so
help them from all operations of these people. M& S use digital marketing and social media
platforms so that company can connect with these people which can help full to maintain the
marketing intermediaries properly internationally and nationally.

COMPETITIVE ANALYSIS
Company Strategy Strengths Weaknesses Competitor
Reactions
Debenhams
Debenhams is
the large
organization
which deals with
various
operations and
doing business in
various locations
across the whole
World. Company
adopts 360
degree marketing
strategy so that
company can pay
attention on the
overall
marketing
aspects.
Company also
using social
media marketing
platforms which
can help full to
improve their
interaction with
High brand value
and good quality
of the products is
considered the
main strength of
the company.
The another
strength of the
company is,
company contain
strong presence
in partnership
and other
acquisition and
Merger reforms
which can help
full improve the
market share of
the company
which lead
market growth.
Debenhams
geographical
reach is not more
as compared to
their rivals who
can consider
their beak point
and another
weakness of
company is that,
there are so
many stores
related to the
retail Industry
which can affect
the marketing
performance of
the company.
Debenhams
market value is
more and
company also
offering wide
range of products
to their
customers which
can help to
attract the
customers. In
context of M& S
cover whole
market place and
adopt various
strategies which
can help full
improve their
market growth.

their customers
and also selling
of the company.
John Lewis and
partners
This is famous
company and
contains more
stores. This
company
established in the
year 1864 by the
John Lewis &
there are 38100
employees are
working.
company also
using the
competitive
pricing strategy
so that their
products
marketing can
improve and
adding the value
and high quality
of the products
and create a
specific
benchmark at the
marketplace.
This company
considers rebuts
greedy strategies
which are useful
to maintain the
market structure.
The prime
concern of the
brand is
innovation &
creativity
products
& the online
presence of the
firm is strong.
This organization
well known of
their policy
“Never
knowingly
undersold".
Company
proving verity of
products is very
limited as
compared to the
other rivals & the
pricing of the
products are
more than the
supermarket and
other stores that
are contained the
weakness of
company,
The marketing of
the company us
good and
effective.
Company
mainly covers
the whole market
younger’s and
students. M&
Scan take some
short of
competitive
advantage in
term of their cost
because John
Lewis offer high
cost as compared
to M& S.

SWOT ANALYSIS
Strengths Weaknesses
 Marks and Spencer is well known
brand which contain strong offering in
product lines as for the current industry
trends.
 This company is well reputed and old
strong E-Commerce infrastructure
which can help full to deal with other
locations effectively (Ribis and et. al.,
2017).
 Company provide high level of impact
in the corporate social responsibilities
which can improve the market demand
of the company.
 The main concern of Marks and
Spencer is to improve the customer
experience so that they can get more
loyalty of the customers.
 Retail Industry is very vast and there
are so many other firms are operating
their business in UK which makes M&
S operations little bit vulnerable.
 The financial performance of the
company is is poor as compared to their
rivals which can effects their
operations.
 The future and business operations of
the company is low in context of China
which is most populated country in the
world so company facing lacking of of
marketing in that country which can we
also a weakness for the company.
 Company also experience some
problem related to frequent goods recall
affect the confidence level of their
customer.
Opportunities Threats
 Company is planning to invest more in
their foreign countries market which
can help full to target more many
customers (Widya Yudha and et. al.,.,
2018).
 High level of technologies and online
preferences can help full to boost the
marketing of the company so that
company can effectively improve their
 Uncertainty of Brexit affects the
marketing of the company and it can be
a big threat for their business.
 More competition in the UK clothing
and food sectors affect the performance
of M & S.
 Constant changes in the latest change
also considered the big threats.